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New Assessment Model for Ontario

In the new Ontario Budget, the government proposes to introduce three important changes to the assessment system to enhance the fairness and predictability of assessments for property owners while continuing to revalue properties on a regular basis and enabling municipalities to continue relying upon a stable source of revenue to fund important public services.

These proposed changes are:

The implementation details of these proposed measures, as well as related programs and policies, will be the subject of consultation with municipalities, the Municipal Property Assessment Corporation (MPAC), and the Assessment Review Board (ARB).

Timing of Re-Assessments

The next reassessment is currently scheduled to take place for the 2009 taxation year, based on property values as of January 1, 2008. For the future, the government is proposing that subsequent reassessments would be conducted every four years, coupled with the implementation of a mandatory phase-in program.

The timing of the four-year reassessment cycle would operate as follows:

Mandatory Phase-In

Budget 2007 proposes to introduce a mandatory phase-in of future residential assessment increases over four years. The proposed four-year phase-in program would be implemented province-wide in 2009, following the next reassessment. This approach would complement the proposed introduction of a four-year assessment cycle. The phase-in program would apply to residential, farm and managed forest properties. The program would not apply to assessment decreases. This avoids the possibility of a homeowner being taxed on an assessment greater than the actual value of their property.

New Appeals Process

The government is proposing to introduce the following measures to improve the fairness and effectiveness of the assessment appeal system:

Establishing a two-stage appeal process with sequential filing deadlines and standardized information disclosure protocols should:

The Ontario government proposes to implement these measures to dovetail with the timing of the next reassessment for the 2009 taxation year.

March 29, 2007 in Real Estate Practices | Permalink


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